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Mission Operation of Arts Complex and Promotion of Arts Programs for Development and People s Enjoyment Culture and Arts Vision A Mecca for Arts and Nation s Cultural Welfare as Korea s Most Representing Arts Complex CONTENTS Message from the Chairman Message from the President Board of Directors Milestones Organization Chart Staff Programs Music Performing Arts Visual Arts Arts Education Hired Programs Administration and Services Administration Customer Services Public Relations & Marketing AAPPAC Patrons of the Seoul Arts Center Finance & Statistics Operating Statistics Budget Overview Financial Overview

Message from the Chairman This winter has been typically brisk and chilly. Maybe you noticed the exquisite snowscape around Seoul Arts Center (SAC), keeping your heart beating strong full of warm bliss. This is my seventh year as chairman of the SAC and every time I walk up those stone steps, my heart jumps like it s my first morning at work. That exuberant feeling of restlessness, I m sure, is not limited just to me. Since Seoul s preeminent arts center established at the foot of Mt. Wumyeon here in Seocho-dong in 1988, SAC has represented Korea s fine arts and culture community. Since then, some 30 million patrons and over two million last year alone have visited. Each has gone home with inspiration and exquisite cultural memories. In 2009 alone, we staged 1,568 performances and 98 exhibits. This past year, everyone at SAC, including our president Jang-sil Kim and staff, worked extremely hard to offer audiences an opportunity to experience the best. SAC is not merely another performance hall in Seoul, but rather represents an integral ethos of Korea s multiarts and culture institutions. To maintain such high expectations, we have offered the less fortunate the chance to enjoy special performances and exhibit programs free of charge through our Culture Sunshine Project. SAC s innovative seating system Seat Contribution 2171, drew an enthusiastic response from the audience, allowing donators to have their names and preferred quotations affixed to the Opera Theater seats. The operation brought in some 800 million KRW in funds, a change from relying on corporations and high-end patrons to contribute the majority of funds. After two years of careful preparation of a new SAC selfticketing system from 2008, the system will now kick off in April 2010. The SAC Ticket system will allow our patrons to purchase tickets directly from the SAC website, the ticket office, or the call center - the first such system for arts institutions in Korea. Wrapping up my SAC Retrospective 2009, I would like to say that the SAC made tremendous efforts to include a greater number of culture-and-arts-lovers, offering more audience-friendly, practical and comprehensive programs. I extend my sincere thanks to all members of SAC management and staff who ran the SAC over the past year. Under the new slogan of Refresh! Seoul Arts Center, we will start anew in 2010 to touch and inspire our patrons, becoming better prepared for the next 20 years. Your continued love, support and passion are as crucial as ever! Thank you. 04 Se-Ung Lee Chairman of the Board of Directors 05

Message from the President 06 As the ever-tumultuous Year of the Ox is drawing to a close, I think about the changes that have taken place at Seoul Arts Center (SAC) in 2009, internally reinforcing our organizational competency to better cope with the rapidly changing business environment. Externally, SAC worked toward preparing a comprehensive foundation that would contribute to a greater cultural welfare for our nation. In sum, 2009 was a special year, celebrating the 21st anniversary for our Music Hall and Seoul Calligraphy Art Museum. Specifically, we successfully re-opened our newlyrenovated Opera Theater, the centerpiece forum for Korea s performing arts. In commemoration of this event, <Le Nozze de Figaro> was staged on March 6, 2009. We pulled off the event by improving our stage equipment and orchestra pit as well as overhauling our dressing rooms and backstage facilities. Additionally, all fire and electrical facility standards were reinforced. Even the seating was upgraded to improve the existing viewing environment, letting us reclaim our reputation as one of the best operatic performing venues. Second, we completed construction work for the <Vitamin Station>, our latest amenities center by maximizing audience convenience. On the same note, our <Service Plaza>, for ticketing and information services, has been relocated inside the Vitamin Station. Our food and beverage facilities were also expanded to offer greater varieties. In addition, we continued to work on the <SAC Ticket> system by April 2010, which will offer more streamlined ticketing. We regularly hosted the <Service Forum> to expand our services, launching several campaigns participated by our patrons to build a more mature viewing culture, based on active communication with our audiences. Third, SAC reinforced its collaboration with its national performing arts troupes in residency to offer innovative productions on par with its standing as Korea s flagship performance center. Productions that combined the strengths of SAC and those of its residency troupes will offer our patrons an opportunity to enjoy high-quality culture and a variety of arts programs thereby enhancing their cultural well-being. Such an approach will also help push Korea toward establishing its national brand and competitive cultural edge. This is necessary in order to march into the cultural battleground where SAC competes with advanced cultural superpowers. The kind of cultural assets we envision can only come from closer collaboration with our affiliated national troupes, which will surely act as the foundation of our artistic psyche. Fourth, at SAC, we are witnessing overwhelming changes in and around our center. To affect change, we reshuffled our organizational structure. This transformed the previous function-centered system of three divisions and 13 teams into the current system of two divisions and 11 departments. If we want to compete with the world s advanced countries, we need to incorporate state-of-theart operations and transform our organizational essence, strengthening our competency and competitive edge. In addition, SAC showcased some truly elegant classical programs in 2009 that had become the audience s favorites by helping to educate the public. Throughout 2009, SAC was keen on exploring musical talents and prodigies, establishing plans to find young musicians through our camp and competition program to nurture young Korean talents. Through the trust and support from our patrons and audiences in 2009, all of our management and staffs will continue to push SAC forward this year to become one of the world s top-rated multi-dimensional performing arts centers. I extend my deepest gratitude to all who have worked so diligently to guarantee our prosperity and advancement. My particular thanks go to the SAC chairman, Lee Se-ung; Patrons of the SAC; and personnel. Their loving support and enthusiasm shown to us are deeply appreciated! Thank you. Jang-Sil Kim President of The Seoul Arts Center 07

Board of Directors Milestones 1982. 01 Proposal for the establishment of arts complex 1984. 11 Groundbreaking Ceremony held 1987. 01 Seoul Arts Center incorporated and registered as a foundation 1988. 02 Music Hall and Seoul Calligraphy Art Museum Opened (Stage ) 1990. 10 Hangaram Art Museum and Arts Library Opened (Stage ) 1993. 02 1997. 02 1997. 12 Opera House Opened (Stage - full completion) th Event Commemorating 10 anniversary Opening Marked 10 million in total audiences 1998. 10 Artistic Directorship introduced (Music, Performing Arts, Exhibition) 1999. 11 2000. 01 2000. 09 Hangaram Design Museum Opened Residence of three national arts companies <Korea national Opera, Korea national Ballet, Korea national Chorus of Korea> Re-incorporated as a special foundation 2002. 10 World Music fountain completed 2003. 03 Event Commemorating 10 th anniversary of all venues opening 2003. 08 Hangaram Art Museum renovated and re-opened 2003. 09 Marked 20 million in total audiences 2005. 05 Music Hall renovated and re-opened 08 2008. 02 2008. 12 th Event Commemorating 20 anniversary of all venues' opening Vitamin Station completed, Opera Theater renovated and re-opened 09

Organization Chart Staff President Auditor Music Arts Director Associate Auditor Performing Arts Director Exhibition Arts Director Executive Director General Director of Administration General Director of Artistic Management Planning & Finance Arts & Business Accounting & General Affairs Facilities Management Customer Service & Information Music Management Performing Arts Management Fine Art Management Art Library Renewal office Profit Development Calligraphy Art Management Design Art Management 10 11

MUSIC Concert Hall PROGRAMS OF MUSIC Recital Hall 14 15

MUSIC PROGRAMS OF MUSIC The SAC Music Hall s big trend in planning its programs 2009 was to increase the number of people who love classical music, thereby spreading classical music to every corner of Korean society. Moreover, we aim to aggressively respond to the needs of customers who obviously have greater expectations for the arts. As part of such initiatives, we reinforced educational functions and offered a greater appeal during concerts, adding video footage of performances and programming comments to help our beginner-level audiences. For our advanced-level programs aimed at devoted classical music fans, we auditioned new artists, showing off their talent in a wide range of repertoires. SAC also showcased <SAC 11 AM Concert>, with increased public appeal and educational quality. The program, which sold out every time in 2009, was favored by audiences, ranging from beginners to advanced art-going connoisseurs. It expanded the foundation for our society s classical music capacity by embracing beginners and nurturing them into expert-level fans. The overriding theme for our <2009 SAC Youth Concert> was Beethoven, the Great Composer, which successfully brought the ethos of his music to younger audiences. In addition, we offered two programs <The Best Classics 2009> and <Summer Chamber Music>, both of which were based on classical performances. SAC s accumulated know-how was mixed particularly well with the repertoire building and performance planning, drawing rave reviews from critics. <2009 SAC Kids Concert> designed to help our children appreciate fine art, showcased repertoires such as The Carnival of Animals and excerpts from the opera The Barber of Seville, as well as other pieces. To help prevent boredom, the children were shown illustrations related to the various pieces. Both the children and their parents showed enthusiasm toward such a novel approach. <2009 Orchestra Festival>, the prestigious authentic classical music stage that has shared many years of history with the SAC Music Hall, was host to 17 symphony orchestras from around the country. The newly-introduced audition program designed to select the musicians produced three talented artists who became part of the country s first-rated performers, turning the event into a trulyexhilarating event. The new planning system, the fruit of SAC s years of know-how, led to record-high ticket sales for the festival. 16 In September 2009, the Music Hall hosted an extremely special program called <The 1st SAC Music Prodigies Camp & Concours>. As Korea s first-ever partnership between music camp and concours for young music talents, the program offered our prodigies opportunities to receive lessons from the world s top-notch music professors. The Camp & Concours will be hosted every other year, ensuring their growth and prosperity on the global stage. In addition, SAC s other routine programs celebrating special days and seasons, such as <2009 New Year's Concert>, <Spring Concert>, <2009 White Christmas Concert> and <2009 New Year s Eve Concert>, successfully entertained the audiences by combining blue-blood classical numbers with more popular pieces. <SAC Pops Concert 2009>, in particular, presented new attempts at arranging carefullyselected trot genre numbers into classical ensemble pieces, a decision that drew rave reviews. The year 2009 was the year where the SAC Music Hall combined our 20-year know-how with outstanding programming, education and concours to deliver even deeper inspiration and satisfaction to all our patrons. 17

PERFORMING ARTS Opera Theater Towol Theater PROGRAMS OF PERFORMING ARTS Jayu Theater 18 Outdoor Stage 19

PERFORMING ARTS PROGRAMS OF PERFORMING ARTS On March 6, 2009, the British Royal Opera House s version of <Le Nozze de Figaro> was staged to commemorate the reinauguration of the fine art facility. The production was a collaboration with top-rated opera houses around the world. Produced by selecting an opera with proven popularity and integrity in the international stage and engaging some of the first-rated Korean and non-korean vocalists, the collaborative projects are an excellent opportunity to enjoy world-renowned operatic singers. <Le Nozze de Figaro>, too, had already received great review from overseas critics, thanks to its unique stage directorship under David McVicar. The magnificent ensemble created by the internally-acclaimed leading vocalists, such as soprano Young-Ok Shin, baritone Hyung Yun, counter-tenor Dong-gyu Lee and baritone Giorgio Caoduro, as well as five supporting vocalists received enthusiastic reviews. In addition to the performance itself, the production s sophisticated stage equipment and exquisite yet realistic lighting also made headlines. Reviews included lavish compliments that the product showed the zenith of what operatic art stands for. The fine yet flamboyant chemistry of conductor Ion Marin and Korean Symphony Orchestra produced in collaboration was reviewed as extremely inspirational and moving to those who attended. 2009 became the first year when we began our full-fledged collaboration with SAC s residency arts troupes. In December, we staged <Swan Lake> and <The Nutcracker> with the Korea National Ballet (KNB) and <2009 Opera Gala Concert> with the Korea National Opera (KNO) at the Opera Theater. <Swan Lake>, which re-visited the theater after a six-year absence, was choreographed by the legend Yuri Grigorovich. It featured rising ballet stars like Seul-Gi Park and Young-Jae Jung. <The Nutcracker>, the annual Christmas season gala performance, was also staged in December, offering a wider range of choices to ballet lovers. KNO established a new year-end regular program by staging their <2009 Opera Gala Concert> at our Opera Theater. The same stage earlier included the production of <Madama Butterfly>, aria highlights from opera <Norma>, and recitals by world-renowned Korean-born vocalists such as Young-Mi Kim and Seong-Hyun Ko. In addition, KNO offered a memorial concert dedicated to the late Hyeon-Myeong Oh, the renowned opera singer who passed away in June 2009. The heartfelt event helped us all remember the late master's passion. SAC s Towol Theater presented its 11th-season authentic stage work series <The Tempest> by William Shakespeare, directed by top-rated theatrical director Jin-Chaek Sohn. The interesting thing about this production was that the ending of the play was revised to feature a happy ending, reflecting forgiveness and reconciliation. The new interpretation of despair and the adaptation of the format into the traditional Korean stage work Madang Nori, might have been rather unfamiliar for today s audiences. But the public loved the more viewer-friendly production, in lieu of the elusive original by the English playwright. 20.. The family audiences favorite <Die Zauberflote>(Magic Flute) was staged at Towol Theater in August, the conventional summer break month. The stage work and wardrobe procured back in 2007 were maintained, while the conducting, directing and cast were all replaced to raise the overall integrity of the production. The all-female conductor-director combination featuring maestro Ja-Kyung Year and director Young-A Chang, was reviewed as bringing a female sensitivity to the production, delivering a gentle yet strong impression. To help communicate the authentic sentiment of the opera s German libretto, the arias - the highlights of the opera - were sung in German, with Korean subtitles. Additionally, the recitative - the speech - was delivered in Korean to help facilitate understanding for those youngsters attending. Such flexibility in presentation styles brought the audience and the opera closer to each other. <Youth Play Festival>, held annually to instill creativity and fine cultural sustenance to children and youth, was hosted at SAC s Jayu Theater. Celebrating its 13th season, the event continued to help expand the number of theater-loving goers. A total of 18 high schools, chosen from regional preliminaries, competed during the nine-day festival, helping to promote the local fine arts. 21

VISUAL ARTS Hangaram Art Museum PROGRAMS OF VISUAL ARTS Seoul Calligraphy Art Museum Hangaram Design Museum 22 V-Gallery 23

VISUAL ARTS PROGRAMS OF VISUAL ARTS 24 Hangaram Art Museum Hangaram Art Museum s most notable trend in planning for 2009 was to present contemporary art to the public as an entity that was easy-tounderstand and fun. The first such attempt to achieve this was a series of contemporary pieces displayed in miniscule spaces throughout the SAC premises, one of them called <Red Mouse>. The audiences viewed the attempt as opening new possibilities for public art exhibits. The overriding theme of <2009 Art & Play>, aimed at the public s acquainting with contemporary art as an entity closer to their hearts, was Art in Super Stars. The idea behind the planning was to explore the notion of Western super stars as interpreted by Korean audiences. In addition, the familiar images of super stars creating fine art helped bridge the gap between contemporary art and the public. In 2009, the theme of <Emerging Korean Artists in the World 2009>, introducing young Korean artists working around the world, was USB. The program increased the connection between our young artists abroad and the local Korean art community. It featured new trends in the hybrid art formed between Korean art and world culture. SAC s hired programs for 2009 included: <Gustav Klimt in Korea>, with its first-ever glittering Asian tour; <Great Masters of European Painting from the State Pushkin Museum of Fine Arts>, featuring Rembrandt s works from the 17th and 18th Centuries; and <YOUSUF KARSH>, introducing the master portrait photographer s works. The successful hosting of massive and high-profile exhibitions filled the museum with crowds day after day, accomplishing the goal of introducing art in people s daily lives. Seoul Calligraphy Art Museum 2009 was the year packed with significant anniversaries - the centennial of Patriot Jung-Geun Ahn s rise against the oppressive Japanese colonial government; the 10th anniversary of the death of renowned calligrapher Chang-Soon Im (aka Chungmyung); the centennial of the birth of another calligrapher Gi-Seung Kim (aka Wongok). To celebrate the events, the Seoul Calligraphy Art Museum organized this year s exhibitions: Art and Thinking, Calligraphy and People, and Special Review of Contemporary Calligraphers. In October, <Exhibition Ahn Jung Geun > unveiled some of the hand-written calligraphy writings of the revered patriot Ahn, collected from both local and overseas sources for the exhibition in 100 years. The show also presented a special lecture titled <Ahn Jung Geun and Dongyang Pyeonghwa School>, which delved into Ahn s activist-scholar mentality and his national values and patriotism. <Chungmyung Im Chang-Soon Exhibition> was staged to commemorate the 10th anniversary of his passing. The exhibit featured some rather underappreciated achievements that only recently had shed light on the world of his artistry and scholarly endeavors. These ranged from calligraphy, connoisseurship, epigraphy, Chinese classics and the research science of bibliography. <The Master of Korean Modern Calligraphy VII - The 100th Anniversary Exhibition of Wongok, Kim Gi-Seung> was organized to commemorate the centennial of the calligraphy style known as Wongok style. The program consisted of an introduction of the style, the style s characteristics in form and the spirit it represented, including the organic relationship between life and art. Additionally, the master s artistry and originality was reviewed to have inspired the further development of Korean calligraphy. In August 2009, SAC and Gangjin-gun, Jeollanam-do jointly launched the exhibition <Flourishing of Pangsan, Yun Jeong-gi of the Dasan School> at Dasan Memorial Center. The works of Jeong-Gi Yun, the grandchild and leading student of Dasan, Yak-Yong Jeong, the great Joseon Dynasty Confucian scholar, as well as the developer of Dasan s scholarly and calligraphy tradition, were re-visited through an exhibition on his life. It included scholarly and artistic interpretations of his relationship with the great Confucian master - an attempt at promoting inter-regional cultural exchange. Hangaram Design Museum For the past 10 years, Hangaram Design Museum focused on establishing the notion of Korean design over the past four decades by introducing the works of internationally-acclaimed designers. Since 2008, the focus has been shifting toward cultivating the public s sensitivity to design, all for the purpose of creating new design trends. The first of a series of such attempts was <2009 CASA Living Design Walk>, which showcased the new generation of design artists and their inventions. To ensure greater communication between the artists and their viewing public, the exhibition hall was extended to the outdoors. The show was reviewed as having shown the newer side of the innovative design museum. <Miffy at the Museum>, which started in July 2009, is another example of the museum s planning based on the notion of design popularization. This program emphasized educational and entertainment qualities that will help develop the children s esthetic sensitivity in their early years. Hangaram Design Museum also hosted a book-sharing event for children, including a social engagement program jointly conceived with the Korean Association the Community Child Center (KACCC). During this program, 100 celebrities and star artists participated to help develop our design culture, teaching children about the meaning of being socially engaged. V-Gallery In December 2008, V-Gallery was inaugurated to show the embodiment of broader and more popular genres of art compared to that showcased by conventional art galleries. The institution s first-ever exhibition was <A Master of the 20th Century Design - Charles Eames>, featuring the works, photography and quotations by the famed designer. That was followed in April by <MYTH in the MIRROR> by 12 photographers. In December, <Naminara Republic branding Exhibition> was staged to introduce the ideas and designs that transformed Nami Island into a vibrant, lively location. V-Gallery s planning reflected its determination to take steps closer to the lives of ordinary citizens and was viewed to have made a huge contribution to the Vitamin Station, evolving into a more publicfriendly space. 25

ARTS EDUCATION Fine Art Academy PROGRAMS OF ARTS EDUCATION Fine Art Academy for Children Music Academy Calligraphy Academy 26 27

ARTS EDUCATION PROGRAMS OF ARTS EDUCATION 28 Music Academy SAC s Music Academy, launched in November 1999 as the Music Academy for Talented Children, has continued to offer diverse and highly educational programs to patrons, especially with the opening of the Music Academy for Adults: Listening to the Music, an adultoriented music appreciation program. The program is noticeable for broadening the audience for classical music by inspiring artistic interest in beginners. Its class materials and venue featuring collaboration between SAC and some world-renowned concert halls, offering an ideal educational environment. The 2009 Music Academy for Talented Children was launched to help excavate prodigies who will lead our nation s future classical music industry. Held in May and November, the auditions hand-pick talents in piano, strings (violin, cello, viola and harp), wind instruments (flute and clarinet) and music composition. By combining a much coveted curriculum and systematic operating system, the program overcomes the limitations of private lessons, nurturing niche talent possessed by prodigies. In 2009, the academy made various new attempts to ensure the objectivity and fairness of the operating system, creating a high-quality educational climate, such as publiclyrecruiting instructors. The music appreciation academy targets adult students, with five classical music appreciation courses and two opera courses to address the cultural needs of classical music fans. The special winter-season lecture series, including Opera Salon, Appreciating Classical Music through Conductors, Artistic Film Appreciation, The Latest Trends in World Opera, and Musicians and Numbers of the Year, offered particularly exciting and audiencefriendly programs. This led to a 112 percent enrollment rate and a 113 percent profit compared to the previous year. The success brought on by the programs became a benchmarking case favored by many concert halls across the country. Fine Art Academy The Fine Art Academy for Adults offers our citizens an opportunity to express their inner artist. Offering courses from beginner classes to studio-level sessions, the academy exposes students to a wide spectrum of fine arts. These include water color, oil painting, acrylic painting, Chinese ink drawing, print, drawing and sketching, croquis, etc. The academy s theory courses were composed of the humanities with a fresh perspective, introducing fine art as well as comprehensive programs navigating the eclectic world of literature, history and philosophy. In 2009, top-rated courses, such as <Passionate Search for Art History>, <The World s Classics Revisited>, <Tour Around the World s Museums>, and <Deep Probe into the World s Art>, were offered. They significantly raised the artlovers understanding and knowledge about humanities. In addition, <Gallery Talk>, a program designed to increase communication and connection between art exhibits and viewers Fine Art Academy courses drew sold-out responses on a daily basis. In 2009, the academy produced 2,183 new art-devotees, consolidating its standing as the citizens art salon, with a vibrant curriculum. Fine Art Academy for Children The Fine Art Academy for Children was opened in 1992 to help cultivate children s creativity and sensitivity to art. Empower Children with Dream and Imagination was the coherent value pursued by the academy over the past 18 years. The program has been an incubator of children s fine art education programs, with an ingenious curriculum allowing children to experience the vast world of art and its various genres. Classes focus on creativity as the fundamental quality and achievement of harmony between art and technique, aiming to increase children s self-confidence in art. They also help the youngsters gain a more balanced view of art. Calligraphy Academy SAC s Calligraphy Academy first opened its door to the public in 1988 at the same time when the Seoul Calligraphy Art Museum was inaugurated. In 2009, when the academy celebrated its 21st anniversary, 51 classes were offered, teaching the art of calligraphy with some 1,000 devoted calligraphers. To satisfy the students diverse needs and to practice the ethos of calligraphy education, the academy opened theory courses in 2009, offering more options in terms of class hours and structure. In December, <Calligraphy Academy Educational Evaluation Exhibition> was put together to show off the students year-long mastering of the arts, offering the audience many opportunities to share varying degrees of style and calligraphy style. The event also re-established the attitude of and direction for calligraphers. 29

HIRED PROGRAMS 30 HIRED PROGRAMS 31

HIRED PROGRAMS HIRED PROGRAMS 32 33

HIRED PROGRAMS HIRED PROGRAMS 34 35

ADMINISTRATION ADMINISTRATION In 2009, SAC endured several prominent changes in its operations related to bringing about greater management efficiency and implementing stronger collaborative efforts between SAC and its residency art troupes (national arts organizations). A reshuffle took place to reorganize the previous three-divisionand-13-team system into the current system comprising two divisions and 11 departments, permitting greater operability. We provided a new position of Director of Business Operation to reinforce communication between the various departments as well as between the head office and the departments. This is meant to reinvigorate the overall organizational structure, decreasing the number of employees by 12 percent from 2008, now at 102. The Business Planning Department was connected directly under the president s office to let us better address rapidly-changing business issues and secure flexibility in our operations. Also, we introduced annual salary and wage peak programs to ensure a transparent reward system including optimal hiring to increase productivity. Simultaneously, we established more cooperative relations between management and labor to guarantee corporate-level participation in our policy. With such measures in place, we were able to increase productivity as well as overall employee welfare. Based on the residency troupes reinforced collaborative strategies, the point of view in our performance planning policy, too, shifted from suppliers to our consumers. By adopting a variety of approaches where SAC and the residency troupes co-plan and produce programs, the new policy implementation is being eagerly anticipated by our patrons. They now know that each of our performance halls will be more specialized, integrating our efforts to transform SAC into a national brand. 38 Last year we worked particularly hard to render the classical arts more accessible to the general public, improving overall accessibility of SAC to broader audiences. We upgraded our transport facilities throughout our premises and installed Braille blocks, expanding the main entrance ramps to greatly improve our accommodation for handicapped visitors. The Vitamin Station, the comprehensive customer service center, increased various service and convenience facilities, hosting various exhibits and events by taking advantage of the concentrated infrastructure. In addition, we routinely hosted public-friendly outdoor performance and programs such as <The Park> and <Art Market> to maximize the space at SAC. 39

CUSTOMER SERVICES CUSTOMER SERVICES In 2009, Seoul Arts Center focused on implementing stronger customer services. With the reorganization completed at the beginning of the year, the primary customer contact and services like ticketing, membership and parking assigned to the Customer Service & Information department. After monitoring SAC s service provision system and working environment, we made sure our patrons use the services with maximum convenience. In addition, we announced the basic concept of the We Love Our Customers campaign as Back to the Basic, setting the mood for our employees to participate in the campaign. Simultaneously, we hosted the monthly Service Forum to catch patrons complaints and inconveniences on the spot and immediately improved on them by setting up specific plans to address them. Also, we launched <Campaign for Elevating Viewing Culture>, expanding its overall scope to include patrons participation. 40 <Direct Ticketing System Development Project> is being completing as it is planned to begin its full service in the second half of 2010. Previously, our patrons had to endure an inconvenience when booking their tickets due to logging onto the SAC website, then reserve tickets through an agency. Moreover, patrons had to personally visit SAC or use a postal service or fax machine when enrolling in academy classes or leasing facilities. All these inconveniences will be resolved in the near future as our website is getting ready for the one-stop-service system allowing ticketing, enrollment and leasing with just a few clicks. When this revolutionary project is successfully completed, case-handling and service-using procedures will be significantly reduced, thereby increasing efficiency in the way we do our business. 2009 was a year marked by extremely positive responses from our patrons who enjoyed our food and beverage services, showcasing new menus and diverse events. We invigorated each facility by introducing various event programs and marketing strategies. As a result, Cafe Mozart opened even on Mondays, the usual day-off for SAC facilities; Cafe Bellini at the Vitamin Station extended their hours until 11 pm to make sure our patrons can take a break before going home. In addition, all of the SAC food and beverage facilities implemented the Happy Hour Event for customer who order menus after 8 pm and offered complimentary menus. Our sales operation in 2009, which included two more new SAC-operated facilities within the Vitamin Station ( Cafe Bellini and Cafe Bauhaus ), led to a 72 percent year-on-year increase to 4.1 billion KRW. 41

PUBLIC RELATIONS & MARKETING PUBLIC RELATIONS & MARKETING 42 43

PUBLIC RELATIONS & MARKETING PUBLIC RELATIONS & MARKETING As the Opera Theater reopened in 2009, our PR tasks for the year were mostly geared at advertising the events and performances related to the re-inauguration of the facility. Each of our departments came up with their own PR strategies, disseminated livelier, more up-close-and-personal news from the arts world and encouraged articles with deeper insight. To reply to some misunderstandings about SAC, we aggressively responded by filing for mediation. As a result, the number of misleading releases significantly declined, helping to restore our image. SPONSORS Our monthly publication Beautiful Life with Seoul Arts Center! reinforced the number of articles and staff writers, increasing the number of qualified and interesting materials. To ensure greater readability, we revamped our fonts and layout design, adding illustrations to articles for stronger visual effects. Additionally, we posted some materials on our website as Webzine features, allowing readers to catch up with what is happening in the Korean arts world. The readers response was enormous! We also produced SACguiding leaflets in English, Japanese and Chinese and distributed them to major tourist information desks and booths around the country to improve the accessibility of our center for visitors from abroad. This, too, was received tremendously well with non-korean visitors and expatriates in Korea. 2009 was a dire year for management, due to the current global recession. Nevertheless, some of our corporate sponsors continued with their Mecenat initiative and supported our programs. They obviously took into consideration the positive aspects of such an initiative, like the potential for improving their brand value through contributions to society. Numerous corporate sponsors including Woori Bank, Hanwha, Korea Life Insurance, Hyundai Motors, BC Card, Industrial Bank of Korea (IBK), BSHK, Jung-Hun Foundation, LG and BMW Korea donated a combined total of 2.8 billion KRW to SAC. Hanwha, in particular, has been sponsoring <Orchestra Festival>, the largest local classical music gala event, for 10 consecutive years. Additionally, the conglomerate has been also serving as a role model for other companies by participating in social engagements through arts and culture such as the Mecenat program. To help pay for the Opera Theater renovations and to raise funds for future projects, we launched a seating donation campaign Engrave Your Stories in the 2,171 Seats at the Opera Theater. Donators are entitled to engrave their names and preferred quotations on the plaques affixed to the back of seating inside the Opera Theater. This campaign is unique in that it targeted ordinary citizens as patrons, aiming to spread arts and culture into people s daily lives. For example, a couple who had become our campaign participants encouraged three more couples. As a result, they created six seats in a row dubbed the Couple-Donators Seats. We also saw donators who contributed under the names of their family, parents or loved ones. The number of seats being accumulated led to some 800 million KRW in donated funds as of the end of December 2009. SAC's Culture Sunshine Project program offers members of the less fortunate and their children opportunities to enjoy arts and high-culture. In 2009, we invited 10,037 people and, thanks to the sponsorship of J K Huh Foundation, added a new program called Namchon Culture-Sharing Journey. These efforts increased the number of invitees by 40 percent compared to 2008. The concerts and shows staged in 2008 for individuals with disabilities also well-represented the cause of Culture Sunshine Project and were welcomed by the handicapped and general audience. In addition, SAC launched a story-book sharing event <Miffy at the Museum>, which donated 3,750 kids books to 75 welfare programs, study rooms and children s centers. On December 28, SAC and Seoul Family Court jointly provided youths in correctional facilities with opportunities to view <Exhibition Ahn Jung Geun > and <2009 SAC Youth Concert>. One of the core implementation tasks for 2009 was to transform SAC into an art-themed park. This materialized in the form of <The Park>, an outdoor space event at SAC. The hybrid park and market idea turned SAC into an everyday facility, expanding the basis of arts and fine art lovers and increasing the number of our patrons by promoting our non-performance operations. With this new initiative, we showcased a wide variety of outdoor events and performances and installed markets and cafes. Also, a lawn square was installed in front of the World Music Fountain and public-friendly sculptures, which were enthusiastically received by our family patrons. To ensure the new program s diversity at early stage, engagement by external businesses was considered mandatory and more professional marketing approaches were required. <The Park> acted to increase the closeness between SAC and the public. 44 45

PATRONS OF THE SEOUL ARTS CENTER PATRONS OF THE SEOUL ARTS CENTER 46 47

OPERATING STATISTICS OPERATING STATISTICS Event and Audience Profiles SAC Presentations & Hires Ratio by Venue 100% 75% 50% 85%(313) 82%(311) 15%(55) 18%(66) 97%(378) 3%(12) 96%(393) 4%(16) 87%(146) 13%(22) 0%(0) 100%(9) 85%(208) 15%(36) 70%(176) 30%(76) 93%(268) 7%(19) 93%(264) 7%(19) 77%(480) 23%(140) 64%(371) 36%(208) 57%(413) 38%(276) 65%(259) 35%(142) 68%(327) 32%(152) 55%(204) 45%(170) 39%(103) 61%(158) 0%(0) 100%(25) 25% 09 08 09 08 09 08 09 08 09 08 09 08 09 08 09 08 09 08 Concert Hall Recital Hall Opera Theater Towol Theater Jayu Theater Hangaram Art Museum Seoul Calligraphy Art Museum Hangaram Design Museum V-Gallery SAC hires 50 Annual Audience by Venue 1,200,000 1,000,000 800,000 600,000 400,000 200,000 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Music Hall Opera House Seoul Calligraphy Art Museum Hangaram Art Museum Hangaram Design Museum V-Gallery 51

BUDGET OVERVIEW BUDGET OVERVIEW Income Income Income from Arts Programs government grants arts programs rental of property other income 29.1% 56.2% 4.7% 5.1% music & performing Arts visual Arts arts education car parking, cafe, marketing 12.2% 3.7% 10.3% 39.1% income benefit from previous year 4.9% venue hires and services 34.7% Expenditure Expenditure Expenditure for Arts Programs 52 arts programs 27.8% venue hires and services 1.5% administration 23.8% property maintenance and utilities 28.5% Expenditure benefit from previous year 5.0% repayment the loan 13.4% music & performing Arts visual Arts arts education car parking, cafe, marketing ordinary operating expenses 29.3% 4.5% 10.6% 38.4% 17.2% 53

FINANCIAL OVERVIEW FINANCIAL OVERVIEW Balance Sheet Statements of Profit & Loss The accounting unit for the Seoul Arts Center, which is a special foundation, include general accounting (for nonprofit businesses) and special accounting for commercial businesses, and the above balance sheet includes both accounting unit. 54 The accounting unit for the Seoul Arts Center, which is a special foundation, include general accounting (for nonprofit businesses) and special accounting for commercial businesses, and the above balance sheet includes both accounting unit. 55